Ann: Rex Announces FY20 Full Year Results, page-7

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01/09/20

15:58

Post #: 46994174
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Originally posted by thommyj ↑

What a result...Would have to be the only airline globally to post an underlying profit in the midst of COVID. A regulated utility...

The audacity of management is staggering...I love it. Put through an impairment equal to the subsidy, recognise a statutory loss and attract a tax benefit of $8m (was otherwise facing a $10m tax bill) while pledging to repay the community by going toe to toe with Qantas, which will coincidentally also benefit Rex ! Lim Kim Hai has delivered a PR masterclass...even Roxy Jacenko would be impressed.

Also, the expansion of their pilot education program via the $9.4m acquisition of ATAA in November already appears to be a prudent deal. Training income came in $7.4m higher than 2019 ($4.6m) at $12m, providing all-important consistent defensive cash flows...and this wasn't even with a full year of revenue, only 8 months. At ~$15m a year with a 15% EBIT margin, valued at 13x this alone is worth $30m of the ~$120m EV (~25%).

There is still significant upside in Rex with the market under appreciating how quickly domestic travel could rebound as summer approaches, irrespective of whether a vaccine is developed. Tourism numbers in Europe have already recovered strongly...

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A regulated utility - I like that.
Quite an apt way of describing the company.

In the midst of the crisis, total revenue is actually up!
$65m decline in passenger revenue offset by $62m govt. grants and subsidies.
The govt. made up for the impact of COVID on the company.

REX Price at posting: $1.09 Sentiment: None Disclosure: Not Held
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Ann: Rex Announces FY20 Full Year Results, page-7

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Ann: Rex Announces FY20 Full Year Results, page-7

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Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Charger shares move up as it completes Bynoe acquisition in NT

Power gets set for 1000-metre maiden drilling program in Brazil

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